Do I need to run a PPSR check before swapping a car?

What the PPSR is

The Personal Property Securities Register (PPSR) is a national register administered by the Australian Financial Security Authority (AFSA). It records security interests over personal property, including motor vehicles. A car loan from a bank or finance company is a common example of a registered security interest.

Why it matters for swaps

Under the Personal Property Securities Act 2009 (Cth), a security interest "runs with the property" — meaning it survives a change of ownership. If you receive a vehicle that has an undisclosed loan registered against it, the lender's security interest does not automatically disappear when you take possession.

If the previous owner later defaults on the loan, the lender can legally repossess the vehicle from you, even if you had no knowledge of the finance.

How to check

1. Go to ppsr.gov.au 2. Select "Search the register" 3. Choose "Motor vehicle" and enter the 17-character VIN 4. Pay the $2 fee (as at April 2026 — verify current fee at ppsr.gov.au) 5. Review the result

A clean result means no security interests were registered against that VIN at the time of the search.

Both parties should check

In a swap, each party is receiving a vehicle. Both parties should independently search the VIN of the vehicle they are receiving. Do not rely on the other party's PPSR result.

Timing

Run the PPSR search on the day of the swap, not weeks earlier. A security interest could theoretically be registered between your search and the handover. Same-day searching provides the strongest protection.

If finance is found

Do not proceed with the swap until the seller provides written confirmation from their lender that the security interest has been discharged (removed from the PPSR). Ask for a copy of the discharge confirmation from the lender directly.